LOUISVILLE, Colo., Sept. 24, 2024 /PRNewswire/ — (TSX: CWEB) (OTCQX: CWBHF) Charlotte's Web Holdings, Inc. (“Charlotte's Web” or the “Company”), a market leader in cannabidiol (CBD) hemp extract wellness products, firmly opposes new California regulations that restrict the sale of many ingestible full-spectrum hemp CBD products that meet federal requirements. As a leader in the hemp industry, the Company will continue to work directly with the Governor and state legislators to advance changes and new laws to ensure consumers have access to non-intoxicating hemp-derived products in California. Charlotte's Web is actively working with industry group One Hemp and consumer advocacy group Coalition for Access Now to support access to hemp-derived wellness products in California.
“While we fully support efforts to regulate synthetic and addictive products, we strongly oppose the inclusion of non-addictive, natural CBD products in this regulatory framework,” said Charlotte's Web CEO Bill Moracnick. “We believe these regulations go too far and unnecessarily limit access to safe, non-addictive hemp products by lumping them together with an entirely different type of product. Other states, like Colorado and Virginia, set shining examples of how to clean up the marketplace while protecting the products consumers rely on for their health and wellness.”
On September 23, 2024, the California Department of Administrative Law approved new emergency regulations submitted by the California Department of Public Health as part of Governor Gavin Newsom's response to the failure of the state Assembly to pass bill AB2223. Bill AB2223 was designed to regulate addictive Delta-8 products, but it lacked the merits or nuanced language to get it through the Senate Appropriations Committee. These new emergency regulations, effective immediately, circumvent the legislative process and impose significant restrictions on the manufacture, distribution, and sale of a wide range of hemp-derived CBD products in California, including non-addictive natural CBD products used by 5.4 million Californians.
The Governor's Office said the emergency regulations are necessary to ensure consumer safety and address gaps in oversight, particularly for hemp-derived products that contain Delta-8 THC. However, the overly broad language also impacts the sale, distribution and package sizes of non-intoxicating, natural CBD products like those offered by Charlotte's Web, including those with no detectable THC and that are NSF Certified for Sport®.
Fifty-seven percent of the state's cities and counties do not allow any retail cannabis businesses, limiting access for consumers who rely on non-intoxicating hemp products.
“We have supported efforts to address bad actors in the hemp industry, but we are shocked that responsible hemp companies were included in this overreach. These companies have long advocated for quality and safety standards backed by science and research. The Governor's decision will hurt good actors in the industry and have dire consequences for families and veterans who rely on these products for their quality of life,” said Jared Stanley, founding member of One Hemp.
The new regulations will directly impact sales of many of Charlotte's Web's ingestible full-spectrum and broad-spectrum hemp-extracted CBD products in California. The impact is limited to the state of California and is not expected to have a material impact on the company's overall sales and revenue in 2024. Charlotte's Web is considering long-term impacts, alternatives, and responses for the state of California.
“These products are essential to the well-being of many consumers, especially those in vulnerable communities, and must be protected,” Moracznik added. “To address this issue, we are exploring alternative solutions in light of these misguided regulations.”
Charlotte's Web is committed to maintaining the highest standards of quality, safety and transparency.
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About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc. is a Certified B Corporation headquartered in Louisville, Colorado, and a market leader in innovative hemp extract wellness products, including Charlotte's Web whole plant full spectrum CBD extracts and broad spectrum CBD certified by NSF for Sport®. Charlotte's Web is the Official CBD of Major League Baseball©, Angel City Football Club and the Premier Lacrosse League. Charlotte's Web brand premium quality products are derived from proprietary hemp genetics grown organically and regeneratively on North American farms. The company's hemp extracts contain natural plant compounds such as cannabidiol (CBD), CBN, CBC, CBG, terpenes, flavonoids and other beneficial compounds. Charlotte's Web's product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, sedation, athletic recovery, immunity), CBN gummies, CBD capsules, CBD topical creams and lotions, and CBD pet products for dogs. Through a substantially vertically integrated business model, Charlotte's Web performs analytical testing from soil to shelf, providing strict control and quality assurance over product quality and consistency. Charlotte's Web's products are distributed to retailers and healthcare professionals throughout the United States and are also sold online through the company's website, www.charlottesweb.com.
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Source: Charlotte's Web Holdings, Inc.
